NSW Labor shows it has no heart for Crean

Simon Crean's hopes of hanging onto the federal Labor leadership were shaken yesterday when leadership aspirant Kim Beazley drew support during a very public appearance at the ALP state conference in Sydney.

In another blow to Mr Crean's authority, conference delegates gave a rapturous welcome to the Premier, Bob Carr.

The welcome for Mr Carr contrasted with a less than enthusiastic response for the federal Opposition Leader on Saturday, when he called on the party to unite behind him in a "crusade" against the Howard Government.

Mr Beazley, who said he came to witness Mr Carr's speech yesterday, parried questions about whether or not his leadership ambitions were revived after a failed challenge to Mr Crean in June.

While not ruling out a return to the leadership, he said: "You go back to exactly what I said after the last ballot. Simon Crean is the leader of the party and he will continue to be."

Mr Beazley was feted yesterday by officials and delegates from the NSW branch, where Mr Crean faces the brunt of opposition to his leadership because of doubts about his ability to win the next election for Labor.

The appearance by Mr Beazley follows a recent speech in which he contradicted Mr Crean by proposing an increase in the Medicare levy to improve health funding.

He again contradicted Mr Crean at the weekend by saying proposals for tax cuts should be put aside until after further spending for health and education.

Mr Beazley was yesterday generous in his praise for Mr Carr, saying the Premier's most significant speech since the state election dealt with issues that "Australians talk about around the kitchen table".

He repeated his view that Mr Carr would be a great asset to federal Labor in Canberra.

"I've tried once or twice to get him to Canberra myself because I think that his wisdom is needed nationally," Mr Beazley said. "However, he loves this place so much and he loves the responsibility he has here - it's going to be like getting a barnacle off the bottom of a ship to get him to Canberra."

Mr Carr was given a spontaneous standing ovation on his arrival at the Sydney Town Hall conference yesterday. A special video presentation was aired before he spoke and he used an autocue provided by the state party to help him connect with the audience.

On Saturday, stage directions were issued for ALP delegates to stand when Mr Crean arrived and no special presentation was made. He read his speech from notes.

At this stage, with Mr Carr declining to move to Canberra, NSW ALP officials are still banking on Mr Crean being replaced by Mr Beazley before the next election although no organised move is afoot to mount a challenge.

Labor frontbencher Julia Gillard yesterday urged the party to unite behind Mr Crean, saying he had been endorsed as leader and received fresh backing from unions in Victoria.

"I think he is 100 per cent committed to the drive for government," Ms Gillard said.

The shadow treasurer, Mark Latham, played down Mr Beazley's comments on tax, saying Mr Beazley had recognised the "common sense" of Labor's position in the past by advocating both tax cuts and spending.